Enthusiast Gaming has announced it has entered into a non-binding Letter of Intent (LOI) to acquire all of the shares of B2B gaming network, Steel Media, the company behind over 20 mobile gaming websites, including pocketgamer.com, pocketgamer.biz, appspy.com, and 148apps.com.
Under the terms of the LOI, Enthusiast has a binding exclusivity period of 120 days – or the agreed-upon closing date, whichever is later – "to complete due diligence and negotiate and settle definitive transaction documentation". The purchase price is expected to be in the range of $3 million USD/$4,023,750 CAD.
Enthusiast – self-described as the fastest-growing online community of video gamers – has a portfolio of 80+ owned and affiliated websites, including The Escapist and Destructoid, and currently reaches over 75 million monthly visitors. It also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo. According to a press release, it said the addition of Pocket Gamer to the network "will enable Enthusiast to capitalize on the fastest growing segment in the gaming sector, mobile gaming".
"Steel Media has built a well-recognised gaming brand and successful businesses across mobile, B2B and events that will enable Enthusiast to scale our business quickly," said Menashe Kestenbaum, Enthusiast Gaming’s CEO. "We have seen a significant increase in mobile gaming, and like esports, mobile gaming continues to be a huge segment in the industry. The acquisition will position Enthusiast as a leader in the mobile gaming sector and will allow us to take advantage of the continued growth within the industry.
"Steel Media’s series of successful and well-established events worldwide will provide an excellent platform for Enthusiast’s event business," Kestenbaum continued. "Our goal has always been to expand EGLX, and we continue to look at opportunities for multi-city expansion. Having Steel Media’s network of events on our platform will provide synergies for growth and provides access to the international stage."